[10-Q] RETRACTABLE TECHNOLOGIES INC Quarterly Earnings Report

Q: What were RVP’s Q3 2025 revenue and profit?

RVP reported sales of $10,085,723 and net income of $371,047 (EPS $0.01) for Q3 2025.

Q: How did RVP perform year-to-date in 2025?

For the first nine months of 2025, sales were $28,826,629 and net loss was $(10,217,140) .

Q: What is RVP’s liquidity position?

As of September 30, 2025, cash was $3,444,538 and investments at fair value were $30,503,005 .

Q: How are tariffs affecting RVP?

Syringes and needles imported from China faced a 130% tariff ; tariff expense was $172K in Q3 and $2.3M YTD .

Q: How concentrated are RVP’s customers?

In Q3 2025, three customers accounted for 57.3% of net sales .

Q: What support does RVP record from the Technology Investment Agreement (TIA)?

Other income – TIA was $1,516,268 in Q3 and $4,470,322 YTD ; related deferred liability was $59,402,231 .

Q: What steps is RVP taking to mitigate tariffs?

The company is shifting production to its U.S. facility , which is expected to raise payroll by about $825K annually but reduce tariff exposure.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Retractable Technologies (RVP) filed its Q3 2025 10‑Q, reporting sales of $10,085,723 and net income of $371,047 (EPS $0.01). Gross profit was $1.69M with a loss from operations of $3.65M, offset by Other income – TIA of $1.52M and an unrealized gain on investments of $2.38M.

For the first nine months, sales were $28,826,629 with a net loss of $(10,217,140). Cash was $3.44M and investments at fair value were $30.50M; other long‑term liabilities related to the TIA were $59.40M. Three significant customers represented 57.3% of Q3 net sales.

The company highlighted tariff headwinds on China‑sourced syringes and needles, with prevailing rates at 130%. Tariff expense was $172K in Q3 and $2.3M year‑to‑date. Management is shifting more production to its U.S. facility, which raises payroll by about $825K annually but is expected to reduce tariff exposure. Inventory write‑downs were about $1.2M year‑to‑date. Shares outstanding were 29,937,159 as of November 3, 2025.

Insights

Q3 profit aided by investment gains; tariffs and mix still pressure operations.

RVP posted Q3 sales of $10.09M and net income of $0.37M, with operating loss of $3.65M narrowed by Other income – TIA ($1.52M) and an unrealized investment gain ($2.38M). Year‑to‑date, revenue reached $28.83M with a net loss of $(10.22M).

Tariffs on China‑sourced syringes/needles at 130% weighed on gross margin; tariff expense was $172K in Q3 and $2.3M YTD. The shift to domestic production is expected to add about $825K in annual payroll, and inventory write‑downs totaled ~$1.2M YTD, further pressuring profitability.

Liquidity includes cash of $3.44M and investments of $30.50M, with $59.40M in TIA‑related deferred income liabilities. Concentration risk persists, as three customers comprised 57.3% of Q3 sales. Subsequent filings may detail progress on domestic 0.5 mL syringe production and tariff exposure.

11/14/2025 - 01:00 PM

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-16465

Retractable Technologies, Inc.

(Exact name of registrant as specified in its charter)


Texas		75-2599762
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

511 Lobo Lane
Little Elm, Texas		75068-5295
(Address of principal executive offices)		(Zip Code)

(972) 294-1010

(Registrant’s telephone number, including area code)

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	RVP	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☑	Smaller reporting company	☑
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ◻ No ◻

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 29,937,159 shares of Common Stock outstanding, excluding 4,087,145 treasury shares, on November 3, 2025.

Table of Contents

RETRACTABLE TECHNOLOGIES, INC.

FORM 10-Q

For the Quarterly Period Ended September 30, 2025

TABLE OF CONTENTS


	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements		1
	CONDENSED BALANCE SHEETS		1
	CONDENSED STATEMENTS OF OPERATIONS		2
	CONDENSED STATEMENTS OF CASH FLOWS		3
	CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY		4
	NOTES TO CONDENSED FINANCIAL STATEMENTS		5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		21
Item 4.	Controls and Procedures		22

	PART II—OTHER INFORMATION

Item 1A.	Risk Factors		22
Item 5.	Other Information		22
Item 6.	Exhibits		23
SIGNATURES		24

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1.Financial Statements.

RETRACTABLE TECHNOLOGIES, INC.

CONDENSED BALANCE SHEETS

(unaudited)


	September 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	3,444,538	$	4,235,388
Accounts receivable, net		8,437,865		7,786,697
Investments in debt and equity securities, at fair value		30,503,005		40,328,308
Inventories		20,388,988		19,189,753
Income taxes receivable		662,359		978,851
Other current assets		691,470		753,062
Total current assets		64,128,225		73,272,059

Property, plant, and equipment, net		82,235,885		87,348,518
Other assets		70,090		103,625
Total assets	$	146,434,200	$	160,724,202

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,574,836	$	4,290,588
Current portion of long-term debt		359,102		332,480
Accrued compensation		885,030		1,073,357
Dividends payable		1,417,438		1,417,437
Accrued royalties to shareholder		827,275		789,358
Other accrued liabilities		1,558,643		873,254
Income taxes payable		5,322		4,442
Total current liabilities		9,627,646		8,780,916

Other long-term liabilities - TIA		59,402,231		63,872,553
Long-term debt, net of current maturities		623,605		900,042
Total liabilities		69,653,482		73,553,511

Stockholders’ equity:
Preferred stock, $1 par value:
Class B; authorized: 5,000,000 shares
Series II, Class B		156,200		156,200
Series III, Class B		74,245		74,245
Common Stock, no par value		—		—
Additional paid-in capital		73,160,333		73,160,333
Retained earnings		16,278,618		26,668,591
Common stock in treasury – at cost		(12,888,678)		(12,888,678)
Total stockholders’ equity		76,780,718		87,170,691
Total liabilities and stockholders’ equity	$	146,434,200	$	160,724,202

See accompanying notes to condensed unaudited financial statements

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RETRACTABLE TECHNOLOGIES, INC.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)


	Three Months		Three Months		Nine Months		Nine Months
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Sales, net	$	10,085,723	$	10,346,857	$	28,826,629	$	23,975,584
Cost of sales:
Cost of manufactured product		7,572,544		9,477,097		24,884,821		20,379,228
Royalty expense to shareholder		827,275		884,570		2,364,905		2,130,161
Total cost of sales		8,399,819		10,361,667		27,249,726		22,509,389
Gross profit (loss)		1,685,904		(14,810)		1,576,903		1,466,195

Operating expenses:
Sales and marketing		1,583,760		1,749,123		4,847,311		4,658,465
Research and development		199,462		174,695		550,703		516,050
General and administrative		3,556,724		3,197,116		9,640,521		10,176,367
Total operating expenses		5,339,946		5,120,934		15,038,535		15,350,882
Loss from operations		(3,654,042)		(5,135,744)		(13,461,632)		(13,884,687)

Other income - TIA		1,516,268		1,469,688		4,470,322		4,429,383
Unrealized gain (loss) on debt and equity securities		2,383,779		1,449,825		(3,217,058)		1,402,660
Loss on trading debt securities		(343)		—		(343)		—
Litigation proceeds		—		—		1,900,000		—
Interest and other income		147,663		293,550		447,135		855,387
Interest expense		(20,585)		(30,489)		(66,295)		(95,789)
Net income (loss) before income taxes		372,740		(1,953,170)		(9,927,871)		(7,293,046)
Provision (benefit) for income taxes		1,693		(31,181)		289,269		8,364,200
Net income (loss)		371,047		(1,921,989)		(10,217,140)		(15,657,246)
Preferred Stock dividend requirements		(57,611)		(57,611)		(172,833)		(172,832)
Net income (loss) applicable to common shareholders	$	313,436	$	(1,979,600)	$	(10,389,973)	$	(15,830,078)

Basic earnings (loss) per share	$	0.01	$	(0.07)	$	(0.35)	$	(0.53)

Diluted earnings (loss) per share	$	0.01	$	(0.07)	$	(0.35)	$	(0.53)

Weighted average common shares outstanding:
Basic		29,937,159		29,937,159		29,937,159		29,937,159
Diluted		29,937,159		29,937,159		29,937,159		29,937,159

See accompanying notes to condensed unaudited financial statements

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RETRACTABLE TECHNOLOGIES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)


	Nine Months		Nine Months
	Ended		Ended
	September 30, 2025		September 30, 2024
Cash flows from operating activities
Net loss	$	(10,217,140)	$	(15,657,246)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,621,705		5,683,496
Net unrealized loss (gain) on investments		3,217,058		(1,402,660)
Realized loss on investments		343		—
Bond amortization		(804)		(763)
Deferred taxes		—		8,392,030
Provision for credit losses		253,524		414,598
Inventory obsolescence adjustment		1,176,437		(9,466)
Other income - TIA		(4,470,322)		(4,429,383)
(Increase) decrease in operating assets:
Accounts receivable		(904,692)		1,582,349
Inventories		(2,375,672)		(3,710,174)
Other current assets		61,592		(16,281)
Income taxes receivable		316,492		43,226
Other assets		33,535		37,261
Increase (decrease) in operating liabilities:
Accounts payable		284,248		(1,527,704)
Accrued liabilities		534,980		147,356
Income taxes payable		880		1,062
Net cash used in operating activities		(6,467,836)		(10,452,299)

Cash flows from investing activities
Purchase of property, plant, and equipment		(509,072)		(1,141,885)
Purchase of debt and equity securities		(421,294)		(757,683)
Proceeds from the sales of debt and equity securities		7,030,000		4,000,000
Net cash from investing activities		6,099,634		2,100,432

Cash flows from financing activities
Repayments of long-term debt		(249,815)		(225,605)
Payment of preferred stock dividends		(172,833)		(172,832)
Net cash used in financing activities		(422,648)		(398,437)

Net decrease in cash and cash equivalents		(790,850)		(8,750,304)
Cash and cash equivalents at:
Beginning of period		4,235,388		12,667,550
End of period	$	3,444,538	$	3,917,246

Supplemental schedule of cash flow information:
Interest paid	$	66,295	$	94,691
Income taxes paid	$	7,381		—

Supplemental schedule of noncash investing and financing activities:
Preferred dividends declared, not paid	$	57,611	$	57,611

See accompanying notes to condensed unaudited financial statements

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RETRACTABLE TECHNOLOGIES, INC.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited)

The following shows the changes in stockholders’ equity for the three-month period ended September 30, 2025:


			Series II		Series III
			Class B		Class B		Additional				Treasury
	Common		Preferred		Preferred		Paid-In		Retained		Stock –
	Stock		Stock		Stock		Capital		Earnings		at cost		Total
Balance at June 30, 2025	$	—	$	156,200	$	74,245	$	73,160,333	$	15,965,182	$	(12,888,678)	$	76,467,282
Dividends		—		—		—		—		(57,611)		—		(57,611)
Net Income		—		—		—		—		371,047		—		371,047
Balance at September 30, 2025	$	—	$	156,200	$	74,245	$	73,160,333	$	16,278,618	$	(12,888,678)	$	76,780,718

The following shows the changes in stockholders’ equity for the three-month period ended September 30, 2024:


			Series II		Series III
			Class B		Class B		Additional				Treasury
	Common		Preferred		Preferred		Paid-In		Retained		Stock –
	Stock		Stock		Stock		Capital		Earnings		at cost		Total
Balance at June 30, 2024	$	—	$	156,200	$	74,245	$	73,160,333	$	24,935,081	$	(12,888,678)	$	85,437,181
Dividends		—		—		—		—		(57,611)		—		(57,611)
Net Loss		—		—		—		—		(1,921,989)		—		(1,921,989)
Balance at September 30, 2024	$	—	$	156,200	$	74,245	$	73,160,333	$	22,955,481	$	(12,888,678)	$	83,457,581

The following shows the changes in stockholders’ equity for the nine-month period ended September 30, 2025:


			Series II		Series III
			Class B		Class B		Additional				Treasury
	Common		Preferred		Preferred		Paid-In		Retained		Stock –
	Stock		Stock		Stock		Capital		Earnings		at cost		Total
Balance at December 31, 2024	$	—	$	156,200	$	74,245	$	73,160,333	$	26,668,591	$	(12,888,678)	$	87,170,691
Dividends		—		—		—		—		(172,833)		—		(172,833)
Net loss		—		—		—		—		(10,217,140)		—		(10,217,140)
Balance at September 30, 2025	$	—	$	156,200	$	74,245	$	73,160,333	$	16,278,618	$	(12,888,678)	$	76,780,718

The following shows the changes in stockholders’ equity for the nine-month period ended September 30, 2024:


			Series II		Series III
			Class B		Class B		Additional				Treasury
	Common		Preferred		Preferred		Paid-In		Retained		Stock –
	Stock		Stock		Stock		Capital		Earnings		at cost		Total
Balance at December 31, 2023	$	—	$	156,200	$	74,245	$	73,160,333	$	38,785,559	$	(12,888,678)	$	99,287,659
Dividends		—		—		—		—		(172,832)		—		(172,832)
Net loss		—		—		—		—		(15,657,246)		—		(15,657,246)
Balance at September 30, 2024	$	—	$	156,200	$	74,245	$	73,160,333	$	22,955,481	$	(12,888,678)	$	83,457,581

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RETRACTABLE TECHNOLOGIES, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(unaudited)

1. BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION

Business of the Company

Retractable Technologies, Inc. (the “Company”) was incorporated in Texas on May 9, 1994, and designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession. The Company began to develop its manufacturing operations in 1995. The Company’s manufacturing and administrative facilities are located in Little Elm, Texas. The Company’s products are the VanishPoint^® 0.5mL insulin syringe; 1mL tuberculin, insulin, and allergy antigen syringes; 0.5mL, 1mL, 2mL, 3mL, 5mL, and 10mL syringes; the blood collection tube holder; the EasyPoint^® blood collection tube holder with needle; the small diameter tube adapter; the allergy tray; the IV safety catheter; the Patient Safe^® syringes; the Patient Safe^® Luer Cap; the VanishPoint^® Blood Collection Set; and the EasyPoint^® needle as well as a standard 3mL syringe packaged with an EasyPoint^® needle. The Company also sells VanishPoint^® autodisable syringes in the international market in addition to the Company’s other products.

Basis of presentation

The accompanying condensed financial statements are unaudited and, in the opinion of Management, reflect all adjustments that are necessary for a fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal and recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed financial statements should be read in conjunction with the financial statement disclosures contained in the Company’s audited financial statements incorporated into its Form 10-K filed on March 28, 2025 for the year ended December 31, 2024.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. The amount reported as a contractual allowance for rebates involves examination of past historical trends related to sales to customers and the related credits issued once contractual obligations of the customers have been met. The establishment of a liability for future claims of rebates against sales in the current period requires that the Company has an understanding of the relevant sales with respect to product categories, sales distribution channels, and the likelihood of contractual obligations being satisfied.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and investments with original maturities of three months or less.

Accounts receivable

The Company records trade receivables when revenue is recognized. No product has been consigned to customers. The Company’s allowance for credit losses is primarily determined by review of specific trade receivables based on historical collection rates and specific knowledge regarding the current creditworthiness of the customers. Those

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accounts that are doubtful of collection are included in the allowance. The Company considers historical experience, the current economic environment, customer credit ratings or bankruptcies, legal disputes, collections on past due amounts, pricing discrepancies, and reasonable and supportable forecasts to develop its allowance for credit losses. Management reviews these factors quarterly to determine if any adjustments are needed to the allowance. Trade receivables are charged off when there is certainty as to their being uncollectible. Trade receivables are considered delinquent when payment has not been made within contract terms. The allowance for credit losses was $ 312 thousand and $668 thousand as of September 30, 2025 and December 31, 2024, respectively.

The Company requires certain customers to make a prepayment prior to beginning production or shipment of their order. Customers may apply such prepayments to their outstanding invoices or pay the invoice and continue to carry forward the deposit for future orders. Such amounts are included in Other accrued liabilities on the Condensed Balance Sheets and are shown in Note 6, Other Accrued Liabilities.

The Company records an allowance for estimated returns as a reduction to Accounts receivable and Gross sales. Historically, returns have been insignificant.

Inventories

Inventories are valued at the lower of cost or net realizable value, with cost being determined using actual average cost. The Company compares the average cost to the net realizable value and records the lower value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

Management considers such factors as the amount of inventory on hand and in the distribution channel, estimated time to sell such inventory, the shelf life of inventory, and current market conditions when determining excess or obsolete inventories. Once inventory items are deemed to be either excess or obsolete, they are written down to their net realizable value. For the nine months ended September 30, 2025, the Company recorded inventory write-downs of approximately $1.2 million. For the three months ended September 30, 2025, the Company recorded $163 thousand of write-downs of inventories. For the comparable periods in 2024, inventory write-downs were not material. These write-downs were primarily related to certain product lots approaching their expiration dates.

Investments in debt and equity securities

The Company holds mutual funds, debt, and equity securities as investments. These assets are held as trading securities and are carried at fair value as of the date of the Condensed Balance Sheets. Net unrealized and realized gains or losses on these investments are reflected separately on the Condensed Statements of Operations. Realized gains or losses on investments are recognized using the specific identification method.

Property, plant, and equipment

Property, plant, and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations as incurred. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity and interest costs associated with significant capital additions. Gains or losses from disposals are included in Interest and other income.

The Company's property, plant, and equipment primarily consist of buildings, land, assembly equipment, molding machines, molds, office equipment, furniture, and fixtures. Depreciation and amortization are calculated using the straight-line method over the following useful lives:


Production equipment		3 to 13 years
Office furniture and equipment		3 to 10 years
Buildings		39 years
Building improvements		5 to 15 years

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Long-lived assets

The Company assesses the recoverability of long-lived assets when indicators of impairments are present, using an assessment of the estimated undiscounted future cash flows related to such assets. In the event that assets are found to be carried at amounts which are in excess of estimated gross future cash flows, the assets will be adjusted for impairment to a level commensurate with fair value determined using a discounted cash flow analysis or appraised values of the underlying assets.

Fair value measurements

For assets and liabilities that are measured using quoted prices in active markets, total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, adjusted for contract restrictions and other terms specific to that asset or liability. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets or liabilities in active markets. For all remaining assets and liabilities, fair value is derived using a fair value model, such as a discounted cash flow model or Black-Scholes model.

Financial instruments

The Company estimates the fair value of financial instruments through the use of public market prices, quotes from financial institutions, and other available information. Judgment is required in interpreting data to develop estimates of fair value and, accordingly, amounts are not necessarily indicative of the amounts that could be realized in a current market exchange. Short-term financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and other liabilities, consist primarily of instruments without extended maturities, the fair value of which, based on Management's estimates, equals their recorded values. Investments in debt and equity securities consist primarily of individual equity securities and mutual funds and are reported at their fair value based upon quoted prices in active markets. The fair value of long-term liabilities, based on Management’s estimates, approximates their reported values.

Concentration risks

The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash, cash equivalents, certificates of deposit, exchange-traded and closed-end funds, mutual funds, equity securities, and accounts receivable. Cash balances, some of which exceed federally insured limits, are maintained in financial institutions; however, Management believes the institutions are of high credit quality. The Company assesses market risk in equity securities through consultation with its outside investment advisors. Management is responsible for directing investment activity based on current economic conditions. The majority of accounts receivable are due from companies which are well-established entities. Management considers any exposure from concentrations of credit risks to be limited.

The following table reflects our significant customers for the three-month and nine-month periods ended September 30, 2025 and 2024:


	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Number of significant customers		3			2			3			3
Aggregate dollar amount of net sales to significant customers	$	5.8	million	$	5.5	million	$	16.1	million	$	12.8	million
Percentage of net sales to significant customers		57.3%			53.2%			55.9%			53.4%

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The Company manufactures some of its products in Little Elm, Texas as well as utilizing manufacturers in China. The Company obtained 61.7% and 90% of its products in the first nine months of 2025 and 2024, respectively, from its Chinese manufacturers. Purchases from Chinese manufacturers aggregated 60.2% and 87.3% of products in the third quarter of 2025 and 2024, respectively. In the event that the Company becomes unable to purchase products from its Chinese manufacturers or produce those products domestically, the Company may need to find an alternate manufacturer for its blood collection set, IV catheter, Patient Safe^® syringe, 0.5mL insulin syringe, 0.5mL autodisable syringe, and 2mL, 5mL, and 10mL syringes. Even with increased domestic production, the Company may not be able to avoid a disruption in supply.

On September 13, 2024, the Office of the U.S. Trade Representative (“USTR”) revealed final adjustments to increase tariffs on certain goods imported from China under Section 301 of the Trade Act of 1974. Among those products included were syringes and needles, at a rate of 100%. During 2025, the on-going development and negotiation of U.S. foreign trade policy with China and other nations has caused the prevailing tariff rates on products imported into the U.S. to fluctuate. These fluctuations have impacted certain goods or groups of goods, and have varied based on country of origin. As of September 30, 2025, the prevailing tariff rate on most syringe and needle products imported from China was 130%. Other products the Company imports from China, which do not fall under the category of needles and syringes, are subject to a 30% tariff rate. As foreign trade policy continues to evolve and as new trade deals are being negotiated, uncertainty as to future tariff rates and affected products remains. Tariffs are expected to have a continuing material impact to the Company’s results of operations and financial position. The Company is working to lessen the financial impact of the tariffs through strategic ordering of products from its Chinese suppliers and shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint^® needles to its domestic manufacturing facility.

Revenue recognition

The Company recognizes revenue when control of performance obligations passes to the customer, generally when the product ships. Payments from customers with approved credit terms are typically due 30 days from the invoice date. Under certain contracts, revenue is recorded on the basis of sales price to distributors, less contractual pricing allowances. Contractual pricing allowances consist of: (i) rebates granted to distributors who provide tracking reports which show, among other things, the facility that purchased the products, and (ii) a provision for estimated contractual pricing allowances for products for which the Company has not received tracking reports. When rebates are issued, they are applied against the customer’s receivable balance. Distributors receive a rebate for the difference between the Wholesale Acquisition Cost and the appropriate contract price as reflected on a tracking report provided by the distributor to the Company. If product is sold by a distributor to an entity that has no contract, there is a standard rebate (lower than a contracted rebate) given to the distributor. One of the purposes of the rebate is to encourage distributors to submit tracking reports to the Company. The provision for contractual pricing allowances is recognized in the period the related sales are recognized and is reviewed at the end of each quarter and adjusted for changes in levels of products for which there is no tracking report. Additionally, if it becomes clear that tracking reports will not be provided by individual distributors, the provision is further adjusted. The estimated contractual allowance is included in Accounts payable in the Condensed Balance Sheets and deducted from Revenues in the Condensed Statements of Operations. Accounts payable included estimated contractual allowances for $2.2 million and $2.1 million as of September 30, 2025 and December 31, 2024, respectively. The terms and conditions of contractual pricing allowances are governed by contracts between the Company and its distributors. Revenue for shipments directly to end-users is recognized when title and risk of ownership pass from the Company. End-users do not receive any contractual allowances on their purchases. Any product shipped or distributed for evaluation purposes is expensed.

The Company provides product warranties that: i) the products are fit for medical use as generally defined within the boundaries of United States FDA approval; ii) the products are not defective; and iii) the products will conform to the descriptions set forth in their respective labeling, provided that they are used in accordance with such labeling and the Company’s written directions for use. The Company has historically not incurred significant warranty claims.

The Company’s domestic return policy provides that a customer may return incorrect shipments within 10 days following arrival at the distributor’s facility. In all such cases, the distributor must obtain an authorization code from

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the Company and affix the code to the returned product. The Company’s domestic return policy also generally provides that a customer may return product that is overstocked. Overstocking returns are limited to two times in each 12-month period up to 1% of distributor’s total purchase of products for the prior 12-month period. All product overstocks and returns are subject to inspection and acceptance by the Company. The Company has not historically incurred significant returns.

The Company’s international distribution agreements generally do not provide for any returns.

The Company periodically recognizes revenue from licensing agreements of its intellectual property. Such licensing agreements provide the licensee with right to use the Company’s intellectual property. The Company accounts for revenue generated under these licensing agreements in accordance with ASC 606. A license may be perpetual or time limited in its application. The Company has concluded that its licensing agreement is distinct as the customer can benefit from the license on their own. In accordance with ASC 606, the licensing agreement is considered functional as it is without professional services, updates and technical support. The Company has determined the current licensing agreement is sales-based or usage-based as defined in ASC 606. In accordance with ASC 606, the Company recognizes revenue from sales-based or usage-based license at the later of a) subsequent sale or usage occurrence or b) the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied (or partially satisfied). The Company did not recognize any licensing fees for the three and nine months ended September 30, 2025, compared to $38 thousand and $227 thousand recognized for the three and nine months ended September 30, 2024. If the Company licenses its products for sale and the customers of the sublicensee are not known to the Company, the Company is obligated to pay Thomas J. Shaw, the owner of certain patented technology, fifty percent (50%) of such revenue pursuant to the terms of the Technology License Agreement between the Company and Mr. Shaw.

Disaggregated information of revenue recognized from contracts with customers and licensing fees recognized are as follows:


	For the three months ended September 30, 2025:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales	$	5,508,018	$	367,681	$	3,303,166	$	8,711	$	9,187,576
North and South America sales (excluding U.S.)		144,326		—		405,472		—		549,798
Other international sales		195,414		5,070		145,116		2,749		348,349
Total	$	5,847,758	$	372,751	$	3,853,754	$	11,460	$	10,085,723

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	For the three months ended September 30, 2024:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales	$	4,470,036	$	290,926	$	4,860,327	$	7,319	$	9,628,608
North and South America sales (excluding U.S.)		569,970		—		—		—		569,970
Other international sales		132,817		7,790		3,572		4,100		148,279
Total	$	5,172,823	$	298,716	$	4,863,899	$	11,419	$	10,346,857


	For the nine months ended September 30, 2025:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales	$	16,506,288	$	1,006,343	$	7,570,956	$	25,976	$	25,109,563
North and South America sales (excluding U.S.)		1,670,846		—		1,177,888		—		2,848,734
Other international sales		559,292		13,018		283,724		12,298		868,332
Total	$	18,736,426	$	1,019,361	$	9,032,568	$	38,274	$	28,826,629


	For the nine months ended September 30, 2024:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales	$	14,655,118		991,924	$	5,615,759	$	20,545	$	21,283,346
North and South America sales (excluding U.S.)		1,325,507		96		59,040		6,240		1,390,883
Other international sales		961,429		151,650		178,276		10,000		1,301,355
Total	$	16,942,054	$	1,143,670	$	5,853,075	$	36,785	$	23,975,584

Income taxes

The Company evaluates tax positions taken or expected to be taken in a tax return for recognition in the financial statements based on whether it is “more-likely-than-not” that a tax position will be sustained based upon the technical merits of the position. Measurement of the tax position is based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

The Company provides for deferred income taxes through utilizing an asset and liability approach for financial accounting and reporting based on the tax effects of differences between the financial statement and tax bases of assets and liabilities, based on enacted rates expected to be in effect when such differences reverse in future periods. Deferred tax assets are periodically reviewed for realizability. As of September 30, 2025, and December 31, 2024, the Company recorded valuation allowances of $11.2 million and $9.1 million, respectively, against its net deferred tax asset.

Earnings per share

The Company computes basic earnings per share (“EPS”) by dividing net earnings for the period (adjusted for any cumulative dividends for the period) by the weighted average number of common shares outstanding during the period. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the dilutive effect, if any, of the common stock deliverable pursuant to stock options and/or common stock issuable upon the conversion of convertible preferred stock.

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The potential dilution, if any, is shown on the following schedule:


	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
Common stock underlying issued and outstanding stock options	—	—	—	2,706
Common stock issuable upon the conversion of convertible preferred shares	—	—	—	—
	—	—	—	2,706

The calculation of diluted EPS under the treasury stock method included the following shares in the three and nine month periods ending September 30, 2025 and 2024:


	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Net income (loss)	$	371,047	$	(1,921,989)	$	(10,217,140)	$	(15,657,246)
Preferred stock dividend requirements		(57,611)		(57,611)		(172,833)		(172,832)
Income (loss) applicable to common shareholders	$	313,436	$	(1,979,600)	$	(10,389,973)	$	(15,830,078)
Average common shares outstanding		29,937,159		29,937,159		29,937,159		29,937,159
Average common and common equivalent shares outstanding — diluted		29,937,159		29,937,159		29,937,159		29,937,159
Basic earnings (loss) per share	$	0.01	$	(0.07)	$	(0.35)	$	(0.53)
Diluted earnings (loss) per share	$	0.01	$	(0.07)	$	(0.35)	$	(0.53)

Shipping and handling costs

The Company classifies shipping and handling costs as part of Cost of sales in the Condensed Statements of Operations.

Share-based Compensation

The Company’s share-based payments are accounted for using the Black-Scholes fair value method. The Company generally records share-based compensation expense on a straight-line basis over the requisite service period. The Company records forfeitures as they occur.

Self-insured employee benefit costs

The Company self-insures certain health insurance benefits for its employees under certain policy limits. The Company has additional coverage provided by an insurance company for any individual with claims in excess of $110,000 and/or total plan claims in excess of $1.4 million for the plan year.

Research and development costs

Research and development costs are expensed as incurred.

Technology Investment Agreement (TIA)

Effective July 1, 2020, the Company entered into a Technology Investment Agreement (“TIA”) with the United States Government Department of Defense, U.S. Army Contracting Command-Aberdeen Proving Ground, Natick Contracting Division & Edgewood Contracting Division (ACC-APG, NCD & ECD) on behalf of the Biomedical Advanced Research and Development Authority (BARDA), as amended, for $81,029,518 in government funding for

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expanding the Company’s domestic production of needles and syringes. At the request of the U.S. government, the TIA was transferred to a successor agreement, identified as Other Transaction Agreement in April 2023. Such agreement contains no additional requirements and, for the purposes of this report, the agreement shall continue to be referred to herein as the “TIA”. Under this agreement, the Company has made significant additions to its facilities which allows the Company to increase domestic production capacity. For further explanation, please refer to Note 7 – Technology Investment Agreement.

As reimbursements were received from the U.S. government for expenditures under the TIA, the Company recorded a deferred liability. In 2021, the deferred liability began to be systematically amortized as a gain over the life of the related property, plant, and equipment and is presented as Other income – TIA on the Statements of Operations. For any reimbursements received for expenditures not capitalized as property, plant, and equipment, Other income – TIA was recognized in the same period as the expense.

Recently Adopted Pronouncements

In March 2024, the FASB issued ASU 2024-02, “Codification Improvements — Amendments to Remove References to the Concepts Statements”, which amends the Codification to remove references to various concepts statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas. ASU 2024-02 is effective for public business entities for fiscal periods beginning after December 15, 2024. For all other entities, it is effective for fiscal years, including interim periods within those fiscal years beginning after December 15, 2025. Early adoption is permitted for all entities for any fiscal year or interim period for which financial statements have not yet been issued or made available for issuance. The Company adopted ASU 2024-02 as of January 1, 2025 with no impact on the Company’s financial statements.

Recently Issued Pronouncements

In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." This update enhances the requirements for public companies to provide more detailed and structured disclosures of their expenses, aiming to improve transparency in financial reporting. The new guidance is effective for fiscal reporting periods beginning after December 15, 2026, and for interim periods starting after December 15, 2027. Early adoption is permitted for fiscal financial statements that have not yet been issued or made available for issuance. Companies can choose to apply the amendment either prospectively to periods beginning after the effective date or retrospectively to prior periods presented in their financial statements. The Company is evaluating the adoption of the amendments and the potential impact it may have, if any, on its financial statements.

In December of 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The updated accounting guidance improves transparency of income tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes paid. ASU No. 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. For all other entities, it is effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. Prospective application is required, with retrospective application permitted. The Company is evaluating the adoption of the amendments and the potential impact it may have, if any, on its financial statements.

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3. INVENTORIES

Inventories consist of the following:


	September 30, 2025		December 31, 2024
Raw materials	$	3,788,772	$	3,980,650
Finished goods		16,600,216		15,209,103
	$	20,388,988	$	19,189,753

4. FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820, “Fair Value Measurements”, defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

●

Level 1 – quoted market prices in active markets for identical assets and liabilities

●

Level 2 – inputs other than quoted prices that are directly or indirectly observable

●

Level 3 – unobservable inputs where there is little or no market activity

The following tables summarize the values of assets designated as Investments in debt and equity securities:


	September 30, 2025
	Level 1		Level 2		Level 3		Total
Equity securities	$	26,229,185	$	—	$	—	$	26,229,185
Mutual funds		3,650,189		—		—		3,650,189
Municipal bonds		623,631		—		—		623,631
	$	30,503,005	$	—	$	—	$	30,503,005


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Equity securities	$	29,259,826	$	—	$	—	$	29,259,826
Mutual funds		10,404,218		—		—		10,404,218
Municipal bonds		664,264		—		—		664,264
	$	40,328,308	$	—	$	—	$	40,328,308

The investment assets are held as trading securities and are carried at fair value as of the date of the Condensed Balance Sheets. The Company intends to hold these assets for possible future operating requirements. The following table summarizes gross unrealized gains and losses from Investments in debt and equity securities:


	September 30, 2025
			Cumulative Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	24,391,134	$	1,838,051	$	—	$	26,229,185
Mutual funds		3,580,551		69,638		—		3,650,189
Municipal bonds		606,909		16,722		—		623,631
	$	28,578,594	$	1,924,411	$	—	$	30,503,005

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	December 31, 2024
			Cumulative Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	24,230,746	$	5,029,080	$	—	$	29,259,826
Mutual funds		10,319,644		84,574		—		10,404,218
Municipal bonds		636,449		27,815		—		664,264
	$	35,186,839	$	5,141,469	$	—	$	40,328,308

Unrealized gains (losses) on investments in debt and equity securities were $(3.2) million and $1.4 million for the nine months ended September 30, 2025 and 2024, respectively. Unrealized gains for the three months ended September 30, 2025 and 2024 were $2.4 million and $1.4 million, respectively.

5. INCOME TAXES

The Company’s effective tax rate on the net loss before income taxes was 0.5% and 1.6% for the three months ended September 30, 2025 and 2024, respectively. The Company’s effective tax rate on the net loss before income taxes was (2.9)% and (114.7)% for the nine months ended September 30, 2025 and 2024, respectively.

A reconciliation of the federal statutory corporate tax rate to the Company’s effective tax rate is as follows:


	Nine Months Ended		Nine Months Ended
	September 30, 2025		September 30, 2024
U.S. statutory federal tax rate	21.0	%	21.0	%
State tax, net of federal tax	(2.2)	%	(0.1)	%
Change in valuation allowance	(21.0)	%	(132.1)	%
Section 162(m); Limit on Compensation	(0.4)	%	(0.1)	%
Other	(0.3)	%	(0.1)	%
Return-to-provision and other	0.0	%	(3.3)	%
Effective tax rate	(2.9)	%	(114.7)	%

The Company uses the recognition and measurement provisions of the FASB ASC Topic 740, Income Taxes (“Topic 740”), to account for income taxes. The provisions of Topic 740 require a company to record a valuation allowance when the “more likely than not” criterion for realizing net deferred tax assets cannot be met. Furthermore, the weight given to the potential effect of such evidence should be commensurate with the extent to which it can be objectively verified. The Company reviewed the operating results, as well as all of the positive and negative evidence related to realization of such deferred tax assets, to evaluate the need for a valuation allowance. As a result of this review, as of September 30, 2025, the Company concluded that a $11.2 million valuation is needed on the net deferred tax asset. As of December 31, 2024, the Company recorded a valuation allowance of $9.1 million against its net deferred tax asset.

The effective tax rate for the three and nine months ended September 30, 2025 was different from the federal statutory rate due primarily to the increase of the valuation allowance on the Company’s deferred tax asset.

6. OTHER ACCRUED LIABILITIES

Other accrued liabilities consist of the following:


	September 30, 2025		December 31, 2024
Prepayments from customers	$	871,502	$	376,565
Accrued professional fees		197,448		221,475
Current portion – preferred stock repurchase		6,000		6,000
Other accrued expenses		483,693		269,214
Total	$	1,558,643	$	873,254

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7. TECHNOLOGY INVESTMENT AGREEMENT

Effective July 1, 2020, the Company entered into the Technology Investment Agreement (TIA) with the U.S. government to expand the Company’s manufacturing capacity for hypodermic safety needles in response to the worldwide COVID-19 global pandemic. The award is an expenditure-type TIA, whereby the U.S. government has made payments to the Company for the Company’s expenditures for equipment and supplies related to the expansion. The Company’s contributions under the terms of the TIA include providing facilities, technical expertise, labor and maintenance for the TIA-funded equipment for a ten-year term. In May of 2021, the Company and the U.S. government amended the TIA agreement to include two additional assembly lines and additional controlled environment space.

The Company has received all equipment, has completed all property construction required by the TIA, and all reimbursement requests have been submitted. No further amounts for expansion under the TIA are expected to be submitted or collected.

At the request of the U.S. government, the TIA was transferred to a successor agreement, identified as Other Transaction Agreement in April 2023. Such agreement contains no additional requirements, and, for the purposes of this report, the agreement shall continue to be referred to herein as the “TIA”. The successor agreement governs ongoing terms established by the TIA until June 30, 2030, which includes maintenance of equipment, availability of capacity, and U.S. government preference in the event of a public health emergency.

Under the TIA, reimbursable amounts are reflected as Other long-term liabilities on the Balance Sheets until the time the deferred income can be systematically amortized over a period matching the useful life of the purchased assets. Other long-term liabilities from the TIA were $59,402,231 and $63,872,553 at September 30, 2025 and December 31, 2024, respectively.

8. BUSINESS SEGMENT

The Company operates in a single reportable segment, referred to as safety medical syringes and other safety medical devices. The business is managed by the chief executive officer who is the Chief Operating Decision Maker (CODM). The CODM evaluates segment performance based on operating income (loss) for purposes of allocating resources and evaluating financial performance. The accounting policies of our single reportable segment are the same as those for the Company as a whole.

The following are summaries of the Company’s sales and long-lived assets by geography:


	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
U.S. sales	$	9,187,576	$	9,628,608	$	25,109,563	$	21,283,346
North and South America sales (excluding U.S.)		549,798		569,970		2,848,734		1,390,883
Other international sales		348,349		148,279		868,332		1,301,355
Total sales	$	10,085,723	$	10,346,857	$	28,826,629	$	23,975,584

Long-lived assets by geography are as follows:


	September 30, 2025		December 31, 2024
Long-lived assets
U.S.	$	78,498,705	$	83,373,876
International		3,737,180		3,974,642
Total	$	82,235,885	$	87,348,518

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9. DIVIDENDS

In June 2021, the Board of Directors approved payments to its Series II, Series III, and former Series IV and Series V Class B Preferred Shareholders in the cumulative amount of $5,056,945 representing all current dividends, dividends in arrears, as well as dividends still owed to shareholders who converted their preferred stock in the past. The dividends were paid on July 22, 2021 to all shareholders who had been contacted and confirmed as the rightful owner entitled to payment. The Company has not yet established contact with all former shareholders, most of whom converted their shares prior to 2001. The Company is continuing its efforts to establish contact with approximately 90 former shareholders who are entitled to approximately $1.4 million. This, along with the current declared dividends, are reflected in Dividends payable on the Condensed Balance Sheets.

For the first three quarters of 2025 and all quarters of 2024, a payment of $39,050 was made to Series II shareholders within one month of each quarter’s end. For the first three quarters of 2025 and all quarters of 2024, a payment of $18,561 was made to Series III shareholders within one month of each quarter’s end.

10. TREASURY STOCK

Treasury share purchases are accounted for under the cost method and are included as a component of treasury stock in the Company’s balance sheets.

Of the 100 million authorized shares of Common Stock, 29,937,159 shares were outstanding and 34,024,304 shares were issued as of both September 30, 2025 and December 31, 2024.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENT WARNING

Certain statements included by reference in this filing containing the words “could,” “may,” “believes,” “anticipates,” “intends,” “expects,” and similar such words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Any forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others: tariffs; material changes in demand; our ability to maintain liquidity; our maintenance of patent protection; our ability to maintain favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; our ability to access the market; production costs; the impact of larger market players in providing devices to the safety market; and any other factors referenced in Item 1A. Risk Factors in Part II. Given these uncertainties, undue reliance should not be placed on forward-looking statements.

MATERIAL CHANGES IN FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We have been manufacturing and marketing our products since 1997. Syringes comprised 65.0% of our sales in the first nine months of 2025. EasyPoint^®products accounted for 31.3% and other products, including our IV safety catheter and blood collection products, were 3.7% of our sales in the first nine months of 2025. For the first nine months of 2025, the sales mix included a higher proportion of international product sales compared to the first nine months of 2024. Traditionally, international sales carry lower average selling prices compared to domestic sales.

Our products have been and continue to be distributed nationally and internationally through numerous distributors. Some of our popular syringe products provide low dead-space. Low dead-space syringes reduce residual medication remaining in the syringe after the dose has been administered. In some instances, the low dead-space allows for additional doses of medication to be obtained from the vials.

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On September 13, 2024, the Office of the U.S. Trade Representative (“USTR”) revealed final adjustments to increase tariffs on certain goods imported from China under Section 301 of the Trade Act of 1974. Among those products included were syringes and needles, at a rate of 100%. During 2025, the on-going development and negotiation of U.S. foreign trade policy with China and other nations has caused the prevailing tariff rates on products imported into the U.S. to fluctuate. These fluctuations have impacted certain goods or groups of goods, and have varied based on country of origin. As of September 30, 2025, the prevailing tariff rate on most syringe and needle products imported from China was 130%. Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 30% tariff rate. As foreign trade policy continues to evolve and as new trade deals are being negotiated, uncertainty as to future tariff rates and affected products remains. Tariffs are expected to have a continuing material impact to our results of operations and financial position. We are working to lessen the financial impact of the tariffs through strategic ordering of products from our Chinese suppliers and shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint^® needles to our domestic manufacturing facility.

While we have manufacturing capabilities to manufacture most of the products we currently sell domestically, some of our products are sourced exclusively from China. 61.7% and 90% of the products we obtained in the first nine months of 2025 and 2024, respectively, were purchased from our manufacturers in China, most of which are now impacted by the tariffs. Tariffs are expected to have a material impact to our results of operations and financial position. Approximately $2.3 million was spent on tariff expenses in the first nine months of 2025. We are working to lessen the financial impact of the tariffs, including shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint^® needles to our domestic manufacturing facility. This shift would decrease tariff expenses but would lead to an increase in our manufacturing workforce costs as we hire new employees. We implemented reductions in force in the second and third quarters of 2025 primarily within non-manufacturing functions, each expected to save approximately $1.6 million, however, overall workforce levels increased due to higher domestic manufacturing. As such, we expect that manufacturing workforce increases instituted in 2025 will raise payroll costs by approximately $825 thousand on an annualized basis.

We have recently adapted some equipment to increase our domestic manufacturing capabilities. The adaptations to existing equipment will allow us to produce 0.5 mL syringes domestically. Once operational, we will no longer rely on imports for these products. We currently anticipate that commercial quantities will become available, as market demand necessitates, in the first half of 2026.

Certain products must be purchased from third party suppliers as we do not currently have the machinery to manufacture our entire product line in our U.S. facility. When equipment was added to our U.S. facility pursuant to the TIA, it was strictly for product lines typically used in the administration of vaccines, as required by the TIA.

In 2020 and 2021, we were awarded significant orders and contracts by the U.S. government for safety syringes for COVID-19 vaccination efforts. From 2020 through the first quarter of 2022, the U.S. government was a significant customer. We cannot predict whether any future U.S. government orders may occur.

Recent additions of manufacturing equipment and facilities under the 2020 TIA have increased our production capacity and our overhead costs. Under the TIA and its successor agreement, until June 30, 2030 we must continue to abide by ongoing terms which include maintenance of equipment, availability of capacity, and U.S. government preference in the event of a public health emergency.

The U.S. government orders as well as the TIA are material events particular to the COVID-19 pandemic and are not indicative of future operations.

Over the past several years, we have experienced certain cost increases in raw materials. Those costs primarily affected our domestic manufacturing because the finished goods we purchased from China were subject to a long-term fixed price contract. Sensitivity to cost fluctuations are likely to become more pronounced as we transition away from production under such a fixed price contract. Other factors that could affect our unit costs include tariffs, supplier cost increases, increases in workforce costs associated with increased domestic production, and changing production volumes. Increases in costs may not be recoverable through price increases of our products.

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We believe domestic customers retained products provided for vaccination purposes in inventory. Customers have reported that demand was diminished due to their remaining syringe inventory. It is difficult to estimate how much, if any, of the remaining inventory might still remain in the market.

As detailed in Note 4 to the financial statements, we held $30.5 million in debt and equity securities as of September 30, 2025, which represented 20.8% of our total assets.

Historically, unit sales have increased during the flu season. From 2020-2022, seasonal effects of the flu season on our revenues were less impactful due to the dramatic increase in sales attributable to COVID-19 vaccinations. Seasonal trends for syringe sales may now be following pre-pandemic patterns. Additionally, there may be more demand for EasyPoint^® products during the flu season, particularly in the retail pharmacy market. Purchases from our retail pharmacy customers may differ from purchasing patterns of general line distributors. Second and third quarter EasyPoint^® sales volumes increased primarily for this reason.

Overall demand may be affected by public sentiment and acceptance of the safety and efficacy of vaccinations. While some products in our catalog of products are unrelated to the administration of vaccines, changes in the acceptance of vaccinations could have a material impact on our business.

A material portion of our net loss for the nine months ended September 30, 2025 is comprised of approximately $3.2 million in unrealized loss in debt and equity securities on the Condensed Statements of Operations. A material portion of our net income for the three months ended September 30, 2025 is comprised of approximately $2.4 million in unrealized gain in debt and equity securities on the Condensed Statements of Operations.

In May 2025, we received a settlement payment of $1.9 million related to the resolution of litigation with former legal counsel. The amount was recorded in Litigation proceeds during the second quarter ended June 30, 2025.

In 1995, we entered into a license agreement with Thomas J. Shaw for the exclusive right to manufacture, market, and distribute products utilizing his patented automated retraction technology and other patented technology. This technology is the subject of various patents and patent applications owned by Mr. Shaw. The license agreement generally provides for quarterly payments of a 5% royalty fee on gross sales of products subject to the license and he receives fifty percent (50)% of the royalties paid to us by certain sublicensees of the technology subject to the license.

RESULTS OF OPERATIONS

The following discussion may contain trend information and other forward-looking statements that involve a number of risks and uncertainties. Our actual future results could differ materially from our historical results of operations and those discussed in any forward-looking statements. All period references are to periods ended September 30, 2025 or 2024, as applicable. Dollar amounts have been rounded for ease of reading.

Comparison of Three Months Ended September 30, 2025 and September 30, 2024

Domestic sales accounted for 91.1% and 93.1% of total revenues for the three months ended September 30, 2025 and 2024, respectively. Domestic revenues decreased 4.6%, while domestic unit sales decreased 20.4%. Domestic unit sales represented 83.9% of total unit sales for the three months ended September 30, 2025 compared to 92.4% for the same period last year. The decrease in unit sales did not translate into a proportional decrease in domestic revenues, primarily due to an increase in average domestic selling price. The average selling price was impacted by change in product mix. The average domestic selling price increased due to decreased EasyPoint^®needle sales in relation to all products sold.

International revenues for the three months ended September 30, 2025 increased 25% compared to the same period in 2024. However, the average international selling price per unit declined relative to the third quarter of 2024, primarily due to a shift in product mix. International sales for the three months ended September 30, 2025 included EasyPoint^®needles sold at a discount to certain international customers which reduced the overall average selling price. There remains uncertainty regarding the timing of future international orders.

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Overall, units sales decreased 12.4%.

Cost of manufactured product decreased 20.1% compared to the same period last year primarily due to lower unit sales. The decrease also reflects a favorable shift in product mix, with a higher proportion of VanishPoint^® syringe sales relative to EasyPoint^®needles during the three months ended September 30, 2025, contributing to higher overall gross margins. Royalty expense decreased 6.5% primarily due to the decrease in gross sales.

Tariffs are expected to continue to materially impact our costs in future periods. Approximately $172 thousand was spent on tariff expenses in the third quarter of 2025. These costs are included in Cost of manufactured product.

Operating expenses increased 4.3% primarily due to product donations of inventory nearing expiration and higher bad debt expense.

The loss from operations was $3.7 million compared to a loss of approximately $5.1 million for the same period last year. The improvement was primarily driven by higher gross margin in the current period, reflecting lower tariff costs compared to the prior year, partially offset by higher domestic manufacturing costs associated with our shift to greater U.S.-based production.

The unrealized gain on debt and equity securities was $2.4 million due to the increased market values of those securities.

The provision for income taxes was $1.7 thousand as compared to a benefit for income taxes of $31 thousand for the same period in 2024. The change is primarily due to reporting income for the three months ended September 30, 2025, compared with a net loss for the three months ended September 30, 2024.

Comparison of Nine Months Ended September 30, 2025 and September 30, 2024

Domestic sales accounted for 87.1% and 88.8% of total revenues for the nine months ended September 30, 2025 and 2024, respectively. Domestic revenues increased 18.0%, while domestic unit sales increased 11.8%. Domestic unit sales represented 78.0% of total unit sales for the nine months ended September 30, 2025 compared to 87.6% for the same period last year. The average domestic selling price was positively impacted by a shift in product mix to more VanishPoint^®unit sales in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

International revenues for the nine months ended September 30, 2025 increased 38.1% compared to the same period in 2024. However, average international selling price per unit declined relative to the first nine months of 2024, primarily due to a shift in product mix. International sales for the nine months ended September 30, 2025 included EasyPoint^®needles sold at a discount to certain international customers which reduced the overall average selling price. There remains uncertainty regarding the timing of future international orders.

Overall, units sales increased 25.5%.

Cost of manufactured product increased 22.1% principally due to increased unit sales and higher inventory write-off expense relating to products nearing expiration. Royalty expense increased 11.0% primarily due to the increase in gross sales.

Tariffs are expected to continue to materially impact our costs in future periods. Approximately $2.3 million was spent on tariff expenses in the first nine months of 2025. These costs are included in Cost of manufactured product.

Operating expenses remained consistent.

The loss from operations was $13.5 million compared to a loss of approximately $13.9 million for the same period last year. This was primarily due to a decrease in legal and litigation fees.

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The unrealized loss on debt and equity securities was $3.2 million due to the decreased market values of those securities.

The provision for income taxes was $289 thousand as compared to a provision for income taxes of $8.4 million for the same period in 2024. The difference is primarily related to fully reserving our deferred tax asset in the second quarter of 2024.

Discussion of Balance Sheet and Cash Flow Items

Cash flow used by operations was $6.5 million for the nine months ended September 30, 2025 due to a number of factors. Aside from the various reconciling items used in determining the overall use of cash, our net loss for the period was the predominant factor. We recognized approximately $4.5 million in other income from the TIA, offset by $3.2 million in unrealized loss in debt and equity securities which is material to the adjustments to total cash flow from operations. Changes in working capital also impacted cash flows from operating activities. Accounts receivable increased by $904 thousand, inventories increased by $2.4 million, and accounts payable increased by $284 thousand.

Cash flow from investing activities was $6.1 million for the nine months ended September 30, 2025, primarily reflecting $7 million in proceeds from the sale of debt and equity securities, partially offset by purchases of property, plant, and equipment and additional investments in debt and equity securities. The $7 million obtained as a result of the sale of securities was used to fund operating activities during the first nine months of 2025.

Cash used by financing activities was $423 thousand for the nine months ended September 30, 2025. This was primarily due to repayments of long-term debt and payment of preferred stock dividends.

LIQUIDITY AND CAPITAL RESOURCES

We have historically funded operations primarily from the proceeds from revenues, private placements, litigation settlements, and loans. We may fund operations going forward from revenues, cash reserves, and investments in trading securities should the need to access those funds arise. We received a settlement payment of $1.9 million in May 2025.

The imposition of tariffs on our products will continue to have a material effect on our operating results and liquidity. Additional capital improvements and increases to our manufacturing workforce will also increase expenses in the near-term as a result of the tariffs and our expected increase in domestic manufacturing. The conversion of existing equipment plus the purchase of additional molds to produce 0.5 mL syringes which have never been produced domestically is expected to cost approximately $1 million, most of which has already been expended. Those products accounted for roughly 9.1% of our overall domestic unit sales and 15.2% of our domestic syringe unit sales for the three months ended September 30, 2025. The products accounted for roughly and 10.9% of our overall domestic unit sales and 16.6% of our domestic syringe unit sales for the nine months ended September 30, 2025. We expect that workforce increases, primarily in manufacturing, instituted in 2025 to support higher domestic production will raise payroll costs by approximately $825 thousand on an annualized basis.

Margins

The mix of domestic and international sales, along with product mix, affects the average sales price of our products. Generally, the higher the ratio of domestic sales to international sales, the higher the average sales price will be. Additionally, product mix plays a role, with syringe sales typically having higher average selling prices and gross profit margins than our other product lines. Some international sales of our products are shipped directly from China to the customer. The number of units produced by us versus manufactured in China can have a significant effect on the carrying costs of Inventory as well as Cost of sales. Generally, an overall increase in units sold can positively affect our margins. The cost of raw materials used in manufacturing, transportation costs, and the impact of tariffs can also significantly affect our margins.

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Our margins have experienced significant fluctuations over the past two years. Most recently, our margins have faced negative pressure from numerous factors. The tariffs enacted in 2024-2025 have had a direct negative impact on products we import from China to date. In reaction to the tariffs, we have acted to increase our domestic production and reduce, to the extent possible, our reliance on imports. While we believe these efforts will enable us to avoid some of the impact of the tariffs, we will be forced to import the products we are unable to produce in the U.S. As we work to increase our domestic production and achieve manufacturing efficiencies, we expect to incur higher manufacturing costs in the near term, but will continue to work to minimize our reliance on imported products.

Cash Requirements

We believe we will have adequate means to meet our short-term needs to fund operations for at least 12 months from the date of issuance of the financial statements. Besides cash reserves and expected income from operations, we also have access to our investments which may be liquidated in the event that we need to access the funds for operations. Expected short-term uses of cash include payroll and benefits, royalty expense, inventory purchases, tariffs, contractual obligations, payment of income taxes, quarterly preferred stock dividends, and other operational priorities. Our liabilities are our bank debt as set forth as Long-term debt on our Condensed Balance Sheets and other liabilities detailed herein in Note 6 to the financial statements. We believe we will have adequate means to meet our currently foreseeable long-term liquidity needs although the new tariffs and our costs related to an increase in domestic manufacturing will increase our expenses materially. For the next 1-3 years, we believe our liquidity will decline materially, but we expect that we may be able to satisfy our long-term cash requirements using a combination of cash and liquidation of our equity investments. If cash needs cannot be met using existing cash and investments, management would further reduce operational costs. In the event that the foregoing is insufficient, we may liquidate certain assets.

Capital Resources

To produce more units at our U.S. facility, we expected to spend approximately $1 million to purchase molds and convert domestic equipment, most of was expended in the second quarter of 2025. Additional equipment expenditures may be necessary in the future.

CRITICAL ACCOUNTING ESTIMATES

We are responsible for developing estimates for amounts reported as assets and liabilities, and revenues and expenses in conformity with U.S. generally accepted accounting principles (“GAAP”). Those estimates require that we develop assumptions of future events based on past experience and expectations of economic factors. Among the more critical estimates management makes is the estimate for customer rebates. The amount reported as a contractual allowance for rebates involves examination of past historical trends related to our sales to distributors and the related credits issued once our distributors have satisfied their contractual obligations. The estimate includes consideration of historical redemption rates, discount rates, a combination of estimated distributor inventories based on tracking information provided by the distributors or if known, inventory turnover rates. The establishment of a liability for future claims of rebates against sales in the current period requires that we have an understanding of the relevant sales with respect to product categories, sales distribution channels, and the likelihood of contractual obligations being satisfied. We examine the results of estimates against actual results historically and use the determination to further develop our basis for assumptions in future periods, as well as the accuracy of past estimates. Based on distributors’ purchasing and claiming rebates practices, we do not expect significant changes to the current inputs and assumption used in the estimate calculations. While we believe that we have sufficient historical data, and a firm basis for establishing reserves for contractual obligations, there is an inherent risk that our estimates and the underlying assumptions may not reflect actual future results. In the event that these estimates and/or assumptions are incorrect, adjustments to our reserves may have a material impact on future results. As of September 30, 2025, we estimate that the total potential future credits to be issued as a result of prior purchases which have not yet been claimed is $2.2 million. These credits are recognized as a liability and included in Accounts payable on the Condensed Balance Sheets.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

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Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, Management, with the participation of our President, Chairman, and Chief Executive Officer, Thomas J. Shaw (the “CEO”), and our Vice President and Chief Financial Officer, John W. Fort III (the “CFO”), acting in their capacities as our principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. The term “disclosure controls and procedures” means controls and other procedures that are designed to ensure that information required to be disclosed by us in our periodic reports is: i) recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms; and ii) accumulated and communicated to our Management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Based upon this evaluation, the CEO and CFO concluded that, as of September 30, 2025, our disclosure controls and procedures were effective as of September 30, 2025.

Changes in Internal Control Over Financial Reporting

There have been no changes during the third quarter of 2025 or subsequent to September 30, 2025, in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1A. Risk Factors.

There were no material changes in our Risk Factors as set forth in our most recent annual report which is available on EDGAR.

Item 5. Other Information.

No director or officer adopted or terminated a trading arrangement in the third quarter of 2025 of the type described by Item 408 of Regulation S-K. As previously reported, on August 22, 2024, Thomas J. Shaw, President, Chairman, and Chief Executive Officer, adopted a written plan for the purchase of Retractable Technologies, Inc. common stock intended to satisfy the affirmative defense conditions of Rule 10b5–1(c). In accordance with the plan, trading began November 20, 2024 and may continue through November 19, 2025 if not earlier terminated. During this period, the plan instructs a broker-dealer to purchase common stock for an aggregate purchase price of up to $800,000 within certain price parameters. Mr. Shaw’s purchases pursuant to this plan are reported on forms filed with the SEC pursuant to Section 16(a) of the Securities Exchange Act of 1934.

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Item 6. Exhibits.


Exhibit No.		Description of Document

31.1		Certification of Principal Executive Officer

31.2		Certification of Principal Financial Officer

32		Certification Pursuant to 18 U.S.C. Section 1350

101		The following materials from Retractable Technologies, Inc.’s Form 10-Q for the period ended September 30, 2025, formatted in inline XBRL (eXtensible Business Reporting Language): (i) Condensed Balance Sheets as of September 30, 2025 and December 31, 2024, (ii) Condensed Statements of Operations for the three and nine months ended September 30, 2025 and 2024, (iii) Condensed Statements of Cash Flows for the nine months ended September 30, 2025 and 2024, (iv) Condensed Statement of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2025 and 2024; and (v) Notes to Condensed Financial Statements

104		Interactive Data File (formatted Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DATE: November 14, 2025	RETRACTABLE TECHNOLOGIES, INC.
	(Registrant)


	By:	/s/ John W. Fort
		JOHN W. FORT III VICE PRESIDENT, CHIEF FINANCIAL OFFICER, AND CHIEF ACCOUNTING OFFICER

Source: View Original Filing on SEC EDGAR

FAQ

What were RVP’s Q3 2025 revenue and profit?

RVP reported sales of $10,085,723 and net income of $371,047 (EPS $0.01) for Q3 2025.

How did RVP perform year-to-date in 2025?

For the first nine months of 2025, sales were $28,826,629 and net loss was $(10,217,140).

What is RVP’s liquidity position?

As of September 30, 2025, cash was $3,444,538 and investments at fair value were $30,503,005.

How are tariffs affecting RVP?

Syringes and needles imported from China faced a 130% tariff; tariff expense was $172K in Q3 and $2.3M YTD.

How concentrated are RVP’s customers?

In Q3 2025, three customers accounted for 57.3% of net sales.

What support does RVP record from the Technology Investment Agreement (TIA)?

Other income – TIA was $1,516,268 in Q3 and $4,470,322 YTD; related deferred liability was $59,402,231.

What steps is RVP taking to mitigate tariffs?

The company is shifting production to its U.S. facility, which is expected to raise payroll by about $825K annually but reduce tariff exposure.

[10-Q] RETRACTABLE TECHNOLOGIES INC Quarterly Earnings Report

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FAQ

What were RVP’s Q3 2025 revenue and profit?

How did RVP perform year-to-date in 2025?

What is RVP’s liquidity position?

How are tariffs affecting RVP?

How concentrated are RVP’s customers?

What support does RVP record from the Technology Investment Agreement (TIA)?

What steps is RVP taking to mitigate tariffs?

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[10-Q] RETRACTABLE TECHNOLOGIES INC Quarterly Earnings Report

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Equity analyst – medical devices neutral

FAQ

What were RVP’s Q3 2025 revenue and profit?

How did RVP perform year-to-date in 2025?

What is RVP’s liquidity position?

How are tariffs affecting RVP?

How concentrated are RVP’s customers?

What support does RVP record from the Technology Investment Agreement (TIA)?

What steps is RVP taking to mitigate tariffs?

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RVP Latest News

RVP Latest SEC Filings

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